Sky pins hopes on deals

Customers can save but only if they sign up to company’s just-launched packages

Sky TV’s new pricing model has been welcomed by consumers with most set to save on their subscription — but only if they opt in to the new packages.

Under the current model, all customers must purchase Sky’s basic package which costs $49.91 per month and then add on extras such as sport or movies.

The latest pricing model which the company unveiled this week, offers the new Sky Starter package which has fewer channels, but costs just $24.91 per month.

Its second new package Sky Entertainment features several other channels at a cost of $25 per month.

The company has also offered entertainment channel SoHo free to customers who opt for both Sky Starter and Sky Entertainment, as well as either Sky Sport, Sky Movies or both.

Customers who don’t opt for the new packages will stay on their current plans.

Extra packages included in Sky Basic cost $25 a month, so there will be no change in the price of $49.91 a month if customers want to keep all channels offered with Sky Basic.

“The board and management believe this new pricing structure will assist in attracting new customers by offering a cheaper entry point for customers who do not want the full Sky package,” the company said.

The changes mean customers wanting Sky Sport could get the Starter package plus Sport for $54.81 per month compared with $79.81 per month with the Basic package.

Sky Basic has 50-plus channels for customers compared with Sky Starter which has 40-plus. Sky’s cheaper packages follow a tough 12 months when 28,000 subscribers cancelled their subscriptions. The broadcaster faces competition from streaming alternatives including the US giant Netflix, which according to Nielsen figures has grown from being a niche player to serving 1.2 million New Zealanders.

Netflix’s low-entry cost, its breadth of content and the rapidly increasing internet speeds in New Zealand have all conspired to put enormous pressure on the paid TV model. Sport though remains an area of strength for Sky, with the broadcaster having locked down the rights for New Zealand’s tier-one sports, including the All Blacks, for a number of years.